Changing the type of business structure is not a small consideration. You have operated for years as a Sole Proprietorship, but it appears that you have outgrown that particular business type and may benefit from changing to a different type of business.

Based upon our previous conversation, I will summarize my interpretation of your business concerns in the bullets below: •Liability. You are concerned about operational liability of the employees handling work on your behalf, as well as your personal liability for the operations and debts of the organization. •Geographic Expansion. You are thinking about expanding to another state, and need a business type that allows you to operate in both states. •Capital Expansion. You will need to raise funds in order to pay for the expansion. •Control. You would like to retain control of the company. •Profit. You are concerned about how profit will be shared if you take on partners, and how you will be taxed on the profit of the organization. • Continuity. You are concerned about how the business will continue to operate if you pass away.

I cannot recommend continuing as a Sole Proprietorship or to start operating as a Partnership based on the concerns listed above. Neither of those business types will address the liability, profit, or continuity issues.

A C Corporation or S Corporation would handle many of those issues, however, the expense and ongoing difficulty of running a Corporation make it a less attractive option. Also, since you are used to operating as a Sole Proprietorship the additional ongoing regulatory and compliance requirements of running a corporation can seem immense. I recommend that you reorganize the business as a Limited Liability Company. Organizing as an LLC will address your liability concerns by separating your personal liability from the liability of the business. If the...

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...TASK A
Sole Proprietorship A sole proprietorship is an unincorporated business owned by one person. It is the simplest and most common type of business. It is attractive to a business owner because it is simple and offers the owner the freedom to make the business decisions and keep all of the profits. That may also serve as a draw back because the owner has to rely on themself for capital, knowledge and liability. A sole proprietorship does not need to meet any requirements to start. It is not required to register as a business unless it operates under a fictitious name (DBA), or provides services or supplies.
-Liability- The proprietor is personally responsible for all of the business’s liabilities. They have no legal protection if the business fails. Creditors may pursue the owner personally for repayment. The owner may be sued personally as well.
-Income Taxes- The sole proprietor will file their taxes for the company and themselves on a 1040 with a schedule C on their personal taxes. All profits and expenses belong to the owner personally.
-Continuity- Unless stated in the owners will and planned ahead for, then the business will end if something detrimental were to happen to the business owner. It is important to have life insurance so the business owner’s family will not suffer from the loss of income.
-Control- One tremendous benefit of sole proprietorship is the business owner’s control of the business decisions. They get to...

...﻿
As the director of human resources of Company X, it is my job to make sure that we as a company are in compliance with pertinent federal laws regarding the treatment of employees. Three situations have come to my attention, and I was asked to analyze the three situations and submit a report regarding whether certain federal acts may apply, or may have been violated.
Situation A : Employee A has been with our company for two years. Employee A spouse just gave birth prematurely to twins. He requested leave to be with his spouse, which was granted. Employee A has been on leave for 11 weeks, and has asked to return to work, and has asked to be paid the salary withheld from his 11-week leave. The new manager has agreed to Employee A’s return to the previous job, at the previous rate of pay. But the manager has denied the request for the 11 weeks of withheld salary. Under the Family and Medical Leave Act of 1993, it states the requirements that provides certain employees with up to 12 workweeks of unpaid, job-protected leave a year, and requires group health benefits to be maintained during the leave as if employees continued to work instead of taking leave. (Www.dol.gov2014) Employee A meets the eligibility of the FMLA, he has worked for the company for at least 12 months, and our company has over 75 employees. He has accrued leave entitlement, which was granted to the employee. He is eligible to take 12 workweeks of unpaid leave for the birth of his newborn twins...

...LIT1 – Task 1 Part A
SOLE PROPRIETORSHIP: A “for profit business” owned and operated by an individual. Owning a sole proprietorship allows an individual to run a business any way they see fit with few state/federal regulations and limited legal formalities. The owner of a sole proprietorship assumes considerable risks by without liability protection and therefore is held personally liable for any judgments against the company and is susceptible to loss of business assets, personal property and real estate.
Liability: The business and the owner are considered one entity. A sole proprietor will be held personally responsible for any debts, profit, or lawsuits that arise during the operation of the business. They are also personally liable for the acts or misconduct of any employee or company representative during business operations.
Income Taxes: The business owner is liable for taxes on the business’ total profits even if some or all of those profits are invested back into the business. Taxes for a sole proprietorship are filed on the owner’s individual tax return in addition to self-employment tax.
Longevity/Continuity: A sole proprietorship is dissolved when the owner opts to close the business, retires or passes away. Essentially the business dies with the owner, sometimes making a sole proprietorship a stepping stone in organizing a growing business.
Control: The owner assumes absolute control of the business.
Profit Retention: The owner...

...﻿Part A
SOLE PROPRIETORSHIP:
LIABILITY – Sole Proprietorship caries a large amount of liability because your personal credit can be affected if business fails.
INCOME TAXES – As a sole proprietorship you only file one income tax for yourself and your business combined.
LONGEVITY/CONTINUITY – A Sole proprietorship can grow as fast or as slow as the owner chooses.
CONTROL – Sole proprietor has complete control over every aspect of the business. The sole proprietorship can grow at fast or slow as the sole proprietor chooses.
PROFIT RETENTION – In sole proprietorship the company’s profit is the same as your individual earnings.
LOCATION – A key to sole proprietorship is that you aren’t required to have a physical location to make your business successful.
GENERAL PARTNERSHIP
LIABILITY- The general partners are both responsible for the debts created by general partnership. This can be a negative as one partner can do something to harm the business, but both would end up being responsible.
INCOME TAXES- A general partnership isn’t subject to income taxes separate from the normal 1040. Each partner does have to file form 1065. Form 1065 reports the partnership’s gross income, taxable income, and business related deductions. The partners must also report their share of the profits.
LONGEVITY/CONTINUITY- If one of the partner quits, the company can be dissolved.
CONTROL- The partnership has to agree upon what percentage each partner receives.
PROFIT...

...﻿LIT1 Task 310.1.2-01-06
Part A
Sole Proprietorship: A sole proprietorship is owned by only one person. All profits and losses are the responsibility of the owner only.
Liability – There is unlimited liability in a sole proprietorship. The owner is solely responsible for any debts that may occur.
Income Taxes – The business files taxes as one single unit. Because profits are not shared, they are considered personal income to the sole proprietor.
Longevity/Continuity – In a sole proprietorship if the owner dies or quits, the business dies as well. The only exception would be if the owner states in his or her will that the business can continue.
Control – The owner has complete control in a sole proprietorship.
Profit Retention – The owner retains all profits.
Convenience/Burden – The owner can start doing business as soon as they like. If the owner wishes to operate under a fictitious name a D.B.A (Doing Business As) will need to be filed. Some forms of business my require permits or licenses.
General Partnership: A business owned and operated by two or more people that share gains and losses.
Liability – There is unlimited liability in a general partnership. The owners/partners are responsible for all profits and losses. If one partner is unable to pay a debt the other partners will be accountable to pay.
Income Taxes – Taxed the same as a sole proprietorship. Each partner reports their earnings on their own personal income tax...

...﻿LIT1 Task 1A
1/10/2014
Sole proprietorship: Is the simplest and most common business structure. There is no legal distinction between the proprietor and the business, which means it is autonomous. You are entitled to all profits and responsible for all your business's losses and liabilities.
Liability- This falls directly on the owner. All debts, liabilities and losses fall on the owner. The owner's assets can be used to alleviate the business's debt.
Income taxes- All income generated through a sole proprietorship is taxed by the Internal Revenue Service. This is reported on the owner's personal tax return.
Longevity/Continuity- A sole proprietorship exits only as long as the owner is alive or until the owner decides to sell or close the business.
Control- The control belongs entirely to the business owner, who also assumes the risks of the business.
Profit Retention- All profit generated is income for the business owner. This profit will be used to satisfy all debts and obligations of the business.
Location- There are no federal laws on location for a sole proprietorship, although state law will differ according to each state.
Convenience/Burden- Sole proprietorship is one of the easiest forms of business to get started. The owner of the business also has full control over the company. The main burdens with a sole proprietorship are that it is harder to get business related financing and that all debts, obligations and legal issues...

...Organizational Forms
Sole proprietorship is statistically the most common business form for in the United State. The business is unincorporated owned and operated by one individual. An advantage of sole proprietorship is the business can be simple and inexpensive to start. A Disadvantage of sole proprietorship is being the only thinker for ideas for decision making, advertising, etc.
1. Liability- There is an unlimited amount of liability because nothing separates you from the business legally. This means the owner is held responsible for everything.
2. Income Taxes- The business and you are considered the same in one. The owner may have to fill out an extra form, and still is accountable to pay his or her personal and business taxes.
3. Longevity- The longevity of the business depends strictly on the owner. The owner must place in there will if they want the business passed to another person otherwise the business ends with the owners death.
4. Control- The business is totally controlled by the owner on every aspect.
5. Profit Retention- All profits made from the business is the owners.
6. Location- If the owners wanting to relocate, requirements from the State moved too must be met before the business opens again.
General partnership is when a business is conducted by two or more people and shares the profit and losses. An advantage of general partnership is that two heads work better than one. More ideas our helpful when decision making becomes hard....

...LIT1: Task 310.1.2-01-06
Task A
Sole proprietorship
1. Liability
* An owner has unlimited liability both personally and as the company owner. Liability is a disadvantage in a sole proprietorship.
2. Income taxes
* The owner is responsible for filing taxes and is allowed to file taxes as part of their personal income taxes.
3. Longevity
* This depends completely on the owner and there continued ability to operate the business. The operation of the business can be significantly affected if the owner becomes sick or dies.
4. Control
* The owner has complete control of the business. The owner is totally responsible for all decisions pertaining for business operations.
5. Profit retention
* The owner has 100% profit retention. They may choose to invest it back into the company or use it for something personal.
6. Location
* The owner has the ability to choose the location of the business or move it to a better location as they choose.
7. Convenience/burden
* Sole proprietorships are very convenient and easy to start up since there are no governing laws as there may be with a corporation. The burden of the business including decisions made that may affect the businesses success are the sole responsibility of the owner.
General Partnership
1. Liability
* The liability is shared by all partners of the business. Also, if one partner does something negligent pertaining to the business, all partners...